Kep Infra Tr    Last:0.52    +0.01

KIT

KIT achieves strong FFO growth of 10.3% YoY to $282.0m, delivers FY 2024 DPU of 3.90 cents

Results Highlights

• KIT achieves strong FFO growth of 10.3% YoY to $282.0 million, driven by new acquisitions and steady portfolio performance
• DPU for FY 2024 of 3.90 cents represents 1% YoY growth over FY 2023 DPU of 3.86 cents (excluding the special distribution)
• Expansion of KIT&rsquo s portfolio across its core business segments with three acquisitions in FY 2024, growing AUM to $9.0 billion as at 31 December 2024
• Record EBITDA achieved at Ixom1 , City Energy and Philippine Coastal, backed by the Trustee-Manager&rsquo s portfolio management capabilities to drive value creation

Financial Performance Keppel Infrastructure Trust (KIT) delivered a strong set of results for the year, with Funds from Operations (FFO) for FY 2024 recording solid growth of 10.3% YoY to $282.0 million. Distributable Income (DI) for FY 2024 was $203.7 million, supported by steady portfolio performance, the resumption of contribution from Keppel Merlimau Cogen Plant (KMC), as well as contributions from newly acquired German Solar Portfolio and Ventura completed during the year.

Factoring timing differences as well as one-offs to better reflect underlying performance, FY 2024 adjusted DI would be $218.7 million2 , 4.3% higher against FY 2023 adjusted DI of $209.7 million3 . Distribution per Unit (DPU) for FY 2024 is 3.90 cents, representing 1.0% YoY growth over FY 2023 DPU of 3.86 cents, excluding the special distribution of 2.33 cents paid in FY 2023.

 

In FY 2024, the Trustee-Manager remained focused on growth and value creation. Capitalising on secular growth trends of energy transition and climate change as well as rapid urbanisation, KIT expanded its portfolio across its core business segments of Energy Transition, Environmental Solutions, and Distribution & Storage in 2024. Assets under management (AUM) grew by 22%, from $7.4 billion as at 31 December 2023 to $9.0 billion as at 31 December 2024, following the acquisitions of the German Solar Portfolio, Ventura and Keppel Marina East Desalination Plant during the year. 

Lightyear      ( Date: 06-Jan-2025 13:58) Posted: Heading north . Dividend coming

 

Heading north . Dividend coming

 

Loss or not doesn' t matter. Cashflow is more important. Depreciation does not affect its DPU

 

Will we see KIT making another loss in 2025 ?

 

Today how many managed to get in at 0.445?

 

I est. About 2 dollars more dividends for every 1000 dollars invested. (2.2 lots)

Secret_Squirrel      ( Date: 13-Dec-2024 19:24) Posted: Extend a non-interest bearing loan and reap all the ENTIRE ECONOMIC BENEFIT from MEW. This enire economic benefit can be use for  distribution of dividend, no need to fork out more more to buy out all the shares remaining shares from KIHPL seems a good deal. At the end of the day, what matters to us is dividend.  According to management, they kept KIHPL as they could provide the technical expertise, it also aligned to our interest. The bank will feel more comfortable lending the money as the business continuity is assured This is a shrewd move, but don' t know why people complains. The board likes woon woon jia bee hoon.deal.  MrBear12      ( Date: 13-Dec-2024 18:29) Posted: A vital and good acquisition

 

But unit holders of KIT will only get 1 cent per S$1000.00 . The return is too negligible.

 

Extend a non-interest bearing loan and reap all the ENTIRE ECONOMIC BENEFIT from MEW.
This enire economic benefit can be use for  distribution of dividend, no need to fork out more more to buy out all the shares remaining shares from KIHPL seems a good deal.
At the end of the day, what matters to us is dividend. 
According to management, they kept KIHPL as they could provide the technical expertise, it also aligned to our interest.
The bank will feel more comfortable lending the money as the business continuity is assured
This is a shrewd move, but don' t know why people complains.
The board likes woon woon jia bee hoon.deal. 

MrBear12      ( Date: 13-Dec-2024 18:29) Posted: A vital and good acquisition Secret_Squirrel      ( Date: 13-Dec-2024 15:07) Posted: below is the presentation of the acquisation. KIT EGM Dec 2024 Presentation.ashx Transaction Overview  - Proposed acquisition of 50% equity interest in Marina East Water Pte. Ltd. (&ldquo MEW&rdquo ) which owns Keppel Marina East Desalination Plant (&ldquo KMEDP&rdquo ). The enterprise value of MEW is approximately S$323 million.  - Following completion, Keppel Infrastructure Holdings Pte. Ltd. (&ldquo KIHPL&rdquo ) and KIT will each hold a 50% joint-controlling equity interest in MEW, with KIT receiving the entire economic benefit from MEW.  - On 25 Apr 2022, MEW had drawn down S$315.0 million on a term loan facility1, which has since commenced amortisation. As at the Latest Practicable Date, S$288.2 million remains outstanding on the facility. At completion, KIT will extend a non-interest bearing shareholder&rsquo s loan of S$35.0 million to MEW

 

A vital and good acquisition

Secret_Squirrel      ( Date: 13-Dec-2024 15:07) Posted: below is the presentation of the acquisation. KIT EGM Dec 2024 Presentation.ashx Transaction Overview  - Proposed acquisition of 50% equity interest in Marina East Water Pte. Ltd. (&ldquo MEW&rdquo ) which owns Keppel Marina East Desalination Plant (&ldquo KMEDP&rdquo ). The enterprise value of MEW is approximately S$323 million.  - Following completion, Keppel Infrastructure Holdings Pte. Ltd. (&ldquo KIHPL&rdquo ) and KIT will each hold a 50% joint-controlling equity interest in MEW, with KIT receiving the entire economic benefit from MEW.  - On 25 Apr 2022, MEW had drawn down S$315.0 million on a term loan facility1, which has since commenced amortisation. As at the Latest Practicable Date, S$288.2 million remains outstanding on the facility. At completion, KIT will extend a non-interest bearing shareholder&rsquo s loan of S$35.0 million to MEW

 

below is the presentation of the acquisation.

KIT EGM Dec 2024 Presentation.ashx

Transaction Overview 
- Proposed acquisition of 50% equity interest in Marina East Water Pte. Ltd. (&ldquo MEW&rdquo ) which owns Keppel Marina East Desalination Plant (&ldquo KMEDP&rdquo ). The enterprise value of MEW is approximately S$323 million. 
- Following completion, Keppel Infrastructure Holdings Pte. Ltd. (&ldquo KIHPL&rdquo ) and KIT will each hold a 50% joint-controlling equity interest in MEW, with KIT receiving the entire economic benefit from MEW. 
- On 25 Apr 2022, MEW had drawn down S$315.0 million on a term loan facility1, which has since commenced amortisation. As at the Latest Practicable Date, S$288.2 million remains outstanding on the facility. At completion, KIT will extend a non-interest bearing shareholder&rsquo s loan of S$35.0 million to MEW









 

 

What happens ?

eddyeddy      ( Date: 12-Dec-2024 09:58) Posted: The mgm really treat the unit holder's like ATM. Made unit holders all suckers .

 

Anyone goes to egm ? What happen ?

 

The mgm really treat the unit holder's like ATM. Made unit holders all suckers .

 

Whole she bang acts on the principle of left to right pocket if its a local deal...so since its relatively safe and provides 6 to 9% yield lor...personally I dont like companies with debts above 20%

 

Is there any good news or news that caused the movement up today ?

 

So quiet here....

 

On the whole, the performance shld be similar to FY23. 
Lets see in Jan.
Relax and enjoy the rest of this year!

Lightyear      ( Date: 19-Nov-2024 19:22) Posted: Will the other business sector drag it down in this FY ?

 

Will the other business sector drag it down in this FY ?

 

KIT just  Proposed Acquisition of 50% Equity Interest in Marina East Water Pte. Ltd. which owns the Keppel Marina East Desalination Plant.
Project Oasis Investor Presentation_05102024.ashx

I ask copilot to summarize the document. below is the summary.

Overview:

-  Proposed Acquisition:  Keppel Infrastructure Trust (KIT) plans to acquire a 50% equity interest in Marina East Water Pte. Ltd. (MEW), which owns the Keppel Marina East Desalination Plant (KMEDP).
-  Transaction Value:  The enterprise value of MEW is approximately S$323 million.
-  Post-Completion Structure:    KIT and Keppel Infrastructure Holdings Pte. Ltd. (KIHPL) will each hold a 50% joint-controlling equity interest in MEW, with KIT receiving the entire economic benefit from MEW.

Key Investment Highlights:

1.  Accretive Acquisition:  Secures long-term and stable cash flows.
2.  Enhanced Portfolio Resilience:  Deepens exposure to water treatment solutions in Singapore.
3.  High-Quality Asset:  KMEDP is a state-of-the-art, energy-efficient desalination plant.

KMEDP Details:

-  Capacity:  137,000 cubic meters per day.
- Unique Feature:  First and only dual-mode desalination plant in Singapore, capable of treating seawater and reservoir water.
-  Contract Terms:  25-year concession with the Public Utilities Board (PUB), Singapore&rsquo s national water agency, until June 2045.

Financial Impact:

- **Distribution per Unit (DPU):** Expected to increase by 0.4% post-acquisition.
- **Net Gearing:** Expected to rise slightly from 39.8% to 40.2%.

EGM Timetable:

-  Announcement Date:  18 November 2024.
-  EGM Notice and Circular Dispatch:  Late November 2024.
-  Expected EGM Date:  December 2024.
-  Expected Completion:  By Q1 2025.

This acquisition aims to bolster KIT' s portfolio with a high-quality, energy-efficient asset that provides long-term, stable cash flows and enhances its role in Singapore' s water security.